1. Assume actual Direct Labor hours are 2,600 hours, the Variable MOH predetermined application rate is $2 per direct labor hour. Variable MOH is applied to the 1,200 units actual produced at 2 hours per unit and a predetermined application rate of $2 per direct labor hour. What is the Variable MOH Efficiency (quantity) variance?

a.

$1,400 U

b.

$400 U

c.

$1,400 F

d. $400 F

2. Assume Actual Fixed MOH is 196,000. Budget Fixed MOH is based on 4 direct labor hours per unit at a predetermined overhead rate of $6 per direct labor hour. MOH was applied based on 8,000 units budgeted. What is the Fixed MOH spending (price) variance?

a.

$48,000 U

b.

$4,000 U

c.

$48,000 F

d.

$4,000 F